Sentences with phrase «more valuable tax deductions»

The higher your marginal tax rate the more valuable a tax deduction is.

Not exact matches

Remember that all tax deductions are more valuable to you the higher your tax bracket.

These tax credits reduce the amount of federal tax the purchaser is liable for, making them much more valuable than tax deductions.

A deduction can never be more valuable than a credit of the same amount... not unless there's a tax bracket above 100 %.

Understanding the difference between a tax deduction and a tax credit is important — especially when you stop to consider that one is more valuable than the other.

Thus tax credits are much more valuable than tax deductions.

The tax deduction on your contributions might be more valuable to you now, and your tax bill may be more modest in retirement.

This can make them much more valuable than tax deductions, which help reduce your taxable income, not the tax you pay.

Tax credits are frequently more valuable than tax deductions because credits reduce your tax bill dollar - for - dollar, while deductions only reduce your taxable incoTax credits are frequently more valuable than tax deductions because credits reduce your tax bill dollar - for - dollar, while deductions only reduce your taxable incotax deductions because credits reduce your tax bill dollar - for - dollar, while deductions only reduce your taxable incotax bill dollar - for - dollar, while deductions only reduce your taxable income.

If the answer is yes, then a Roth IRA is better (because the benefit gained from a Roth — tax - free distributions in retirement — will be more valuable than the benefit gained from a traditional IRA — a current deduction).

Although notably, once the PEP and Pease limitation is in effect, any above - the - line tax deductions become slightly more valuable than below - the - line strategies like charitable giving (because an above - the - line deduction is not only an outright tax deduction, but also reduces exposure to PEP and Pease themselves).

Actually, any itemized tax deduction is more valuable the higher your tax bracket.

Remember that all tax deductions are more valuable to you the higher your tax bracket.